There was a thread yesterday about Jim Cramer and Gamestop (GME) stock.
Although I disagreed with just about everyone in that thread, it did cause me to do a little digging.
I found this lecture by Patrick Byrne. He explains how Goldman Sachs creates FAKE shares of stock that do not exist, and this is how their company is so profitable.
The problem is, it has caused massive leverage in the system, and could be one of the reasons for a stock market crash (the money printing by the Federal Reserve is the other reason).
Goldman Sachs and the other prime brokers are THE SOURCE of ALL fake shares in the marketplace (and basically, all the fuckery in the marketplace).
The part where he explains HOW they create the fake shares is about 10 minutes of the presentation, and starts at about 3:00 (then, he goes on to talk about how to solve the problem with blockchain):
https://www.youtube.com/watch?v=COQvMsbb-Cw
- Almost 100% of the profits of Goldman Sachs comes from their "Securities Lending" operation
- That operation is focused mostly on "hard to borrow shares"
- They identify stocks that people want to short, then they lend those shares out
- They do NOT have to actually own the stock when they lend it out
- This allows GS to lend out shares that do not exist
- Since they are also a prime broker, most of this lending is necessarily to hedge funds, which are the investors who are shorting stock that does not exist
Goldman Sachs and the other 5 prime brokers are the SOURCE of all the fake shares out there.
This is EXACTLY the same as the "money changers" from centuries ago, when they created more money certificates than were actually backed by gold on deposit. Same exact scam, just with stock instead of gold.
It is always good to know the names of the criminals to prosecute. Now, it's just a matter of finding the prosecutors and getting them into office.
What is your source?
Because this source says different. Says sales are DOWN 21.28% (YoY):
https://finance.yahoo.com/quote/GME/financials?p=GME
Current liabilities exceed cash. And they are losing money.
They have less in cash than current liabilities. $1.4B cash, $1.5B current liabilities.
And they ain't "making money" (i.e. profit), they are losing money every year/quarter. And the rate of losses is increasing.
No matter how you look at it, operating loss, cash flow loss from operations, whatever. Around $400M per year in losses.
Gee ... I wonder why.
Well, that is good news, and you are the first person in two long threads who actually mentioned this, or anything that might help the company turn around.
If they can turn it around, you have a shot.
I have my doubts, though. We will see who turns out right.
So what? That's just an arbitrary date, as is any other date. I can also say it is down from $483. We are both right. So what?
And it's down 80% from its high. Why not sell in the $300's? $200's? And buy back in later?
The fact that it has been a rollercoaster doesn't really mean anything other than it has been a rollercoaster. Anyone who bought under the current price is up. I get it. But I would bet that does not apply to most people around here. Just a hunch.
And it would not apply to anyone who is thinking of buying now, based in part on what people around here and on Reddit say. That is the big issue to me.
The company is dog shit, based on its financials. The naked short story is no longer valid, unless it is "hidden naked shorts" which looks more like a wet dream than anything substantive.
Let's put it this way: Were there real people who bought it around $450 through their broker, and the broker took real cash out in exchange for the shares? $400? $350? $300? $250? $200? $150?
Did real people pay real money to buy those shares from a real broker, or are you saying it is all an illusion? If they did, then they got SMOKED due to the pump and dump story that is STILL a pump and dump ... UNTIL PROVEN OTHERWISE.
That's a plus. Chewy looks like a decent company. A little tight on the financials, but the revenue growth is impressive, and that means they will attract capital infusions when needed.
That is not the case with GME. Maybe he can turn it around.
Good move, potentially.
Maybe. Have you seen all the "electric car companies" that are just puffing smoke up your skirt lately? Electric cars, blockchain, cyrptocurrency are all "hot" right now. This is a negative sign to me. We'll see if they actually do anything.
Biotech stocks are constantly pushing the next great "cure." Lemmings jump on board, stock shoots up, professionals and insiders take their profits, and he stock crashes back to the ground, where it belongs.
Happens ALL THE TIME. Same with the "hot" new stuff.
Talk is cheap. VERY CHEAP -- but also VERY profitable, for pump and dumpers. Let's see how they roll.
Yes, I saw that they got a capital infusion recently, of $1.5 billion. If they didn't they would have gone bankrupt already.
But that money is not helping much. It's just enough to keep them floating a little longer ... until either then next infusion, or bankruptcy.
The "hot" story is most likely their attempt to find the next sucker ... err, I mean ... investor to float them some more money sometime this year.
Maybe they pull it off, BUT ... burn rate and current liabilities. That is what the CEO is thinking about every night when he goes to bed. Guaranteed.
Now, see there? Here I was, gonna say something nice about you FINALLY coming in and providing this kind of response to my challenges, when nobody else would, and then you have to be a dick about it.
Let's clear up one thing. You provided ZERO SAUCE for your claims that GME's revenues are up (rather than down) and that they are profitable (when, in fact, they are losing money).
My sauce:
Yahoo Finance:
https://finance.yahoo.com/quote/CHWY/balance-sheet?p=CHWY
Securities and Exchange Commission:
https://www.sec.gov/cgi-bin/browse-edgar?CIK=0001326380&owner=exclude
BTW, the numbers from both sources match. And why wouldn't they? Yahoo is taking the data directly from the SEC.
Check it out. GME revenues are DOWN, not up. They are LOSING money, not making money.
What is YOUR sauce that claims otherwise? Strange that you didn't provide any.
(Embarrassing, even.)
Didn't think i needed to post a source since its all over the internet and incredibly easy to find.
GameStop revenue for the quarter ending October 31, 2021 was $1.297B, a 29.05% increase year-over-year.
GameStop revenue for the twelve months ending October 31, 2021 was $5.879B, a 13.89% increase year-over-year.
https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue
You were being a dick, and you are wrong about most things you've said. So i'm being a dick back. You are wrong. You lack foresight. You are inflammatory. You are annoying. Im done.
Who needs punk ass bitches anyway. He can wallow in his retardation.
You just can't seem to get anything right, can you?
And you have not answered ONE of my questions, but have probably posted here more than I have ... and in all of that, you have said nothing.
And you still write like a child. Grow up.
LOL. You apparently can't read.
Your OWN SOURCE says:
https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue
Those are the same numbers that I posted from the SEC.
Looks like GME has a fiscal year-end of March, not December. I did not know that (but you should have).
They might have a slight increase in revenues when the next year-end finishes.
So, maybe they will turn around. But they are currently still losing money.
Will be interesting to watch the fireworks from the sideline.